Arthur Hayes Says Bitcoin Faces Weakness Until Fed or Banks Expand Balance Sheets

Arthur Hayes expects Bitcoin weakness to persist until the Federal Reserve or banks expand their balance sheets, despite rising dollar liquidity. The .USDLIQ gauge rose 4.49% this year to 32.71 million as of November 2, but remained 0.6% below its October peak, according to BeInCrypto. On October 15, Hayes urged traders to go long BTC and ETH, citing an expected multi-trillion-dollar bailout after the AI data center boom; days later, he sold about $22.28 million in crypto from Maelstrom’s directional book and said he would sit out. He has previously linked crypto gains to Fed money creation; BTC has dipped below $77,000 and lagged record global money supply of $103.66 trillion.